4 Ultra-High-Yield Energy Stocks Are September Strong Buys (One Yields Over 10%)
Elevated energy prices from the U.S.-Iran conflict make four high-yield energy stocks paying 6% to over 10% dividends compelling September buys.
TXO Partners leads the group with a 10% dividend yield, backed by 129 million barrels of oil equivalent reserves across three major U.S. basins.
Investors wanting to dodge K-1 tax forms can access 7% MLP income through the ALPS Alerian MLP ETF, which issues a simple 1099 instead.
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Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for 20 years because, despite the stock market's ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.
With September more than halfway over and the market taking its usual rollercoaster ride this time of year, one sector that will remain in focus is energy, because regardless of how the U.S. war with Iran concludes, energy prices are likely to stay higher through the rest of 2026 and well into next year. Distribution bottlenecks, refinery backlogs, and other issues within the energy complex are likely to keep benchmark oil prices higher than they were before the war. One sector that will continue to benefit is energy, so we screened our 24/7 Wall St. energy stock database for high-yielding companies that can offer steady passive income to shareholders.
24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now . Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.
The report is free, and you can see why we think each stock is a top investment today.
Four companies we've long believed offer value alongside high dividends are top picks for September, and one of these companies we've covered for years even helped its management team effect a reverse stock split, which catapulted the shares higher a few years ago. All four are Buy-rated at major Wall Street firms that we cover.
While these stocks aren't for everyone, investors building strong passive income streams can do exceptionally well with some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can use a barbell approach to generate substantial passive income.
This is the company we worked with a few years back when they did a reverse split and stormed higher. The shares pay a 7% dividend. Northern Oil & Gas ( NYSE: NOG ), as an independent energy company, operates as a non-operator in the acquisition, exploration, development, and production of oil and natural gas properties in North America, primarily in:
Its principal business is exploring, developing, and producing crude oil and natural gas in the United States. The company's portfolio comprises 400,000 acres of low-breakeven lands with over 12,500 wells. Diversified by basin and commodity type, its wells are operated by more than 100 public and private operators.
Northern Oil & Gas engages in oil and natural gas exploration and production by participating on a proportionate basis alongside third-party interests in wells drilled and in spacing units that include its acreage. It also acquires wellbore-only working interests in wells where it does not hold the underlying leasehold interests from third parties.
This stock traded in a tight range before breaking out and offers a dependable 6.40% dividend yield. Plains All American Pipeline ( NYSE: PAA ) engages in the pipeline transportation, terminalling, storage, and gathering of crude oil and natural gas liquids (NGLs) in the United States and Canada.
The company operates in two segments. The Crude Oil segment offers:
Terminalling, storage, and other facilities-related services and merchant activities
Ethane, propane, normal butane, iso-butane, natural gasoline, and crude oil refining processes
With a huge 10.53% dividend and a strong management team, this is an outstanding idea for investors seeking income and energy exposure. TXO Partners ( NYSE: TXO ) is a master limited partnership focused on acquiring, developing, optimizing, and exploiting conventional oil, natural gas, and NGL reserves in North America.
Its reserves are approximately 129 million barrels of oil equivalent (MMBoe), of which approximately 60% were liquids and 80% were proved developed, both on a Boe basis.
The company's assets consisted of approximately 1,294,761 gross (641,865 net) leasehold and mineral acres located primarily in the Permian Basin, San Juan Basin, and Williston Basin. Its properties are predominantly located in the Permian Basin of New Mexico and Texas, the San Juan Basin of New Mexico and Colorado, and the Williston Basin of Montana and North Dakota.
TXO Partners holds a 50% interest and has executed purchase and sale agreements with multiple private buyers to dispose of certain oil and gas assets owned by Cross Timbers Energy.
While somewhat off the radar, this is the highest-yielding stock in the group, with an 8.84% dividend yield, and offers an outstanding entry point. Western Midstream Partners ( NYSE: WES ) acquires, owns, develops, and operates midstream assets.
The company gathers, compresses, treats, processes, and transports natural gas, and gathers, stabilizes, and transports condensate, NGLs, and crude oil. The company also collects and disposes of produced water. The midstream assets are located in:
In addition, as a natural gas processor, the company also buys and sells natural gas, NGLs, and condensate on its own behalf and as an agent for its customers under specific contracts. The company's subsidiaries include:
Those looking to avoid the pesky K-1s can buy shares of the ALPS Alerian MLP ETF ( NYSE: AMLP ), which pays a substantial 7.29% dividend. Investors receive a 1099 instead of a K-1. You will receive a K-1 from energy MLPs.
If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And WES wasn't one of them.
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